Credit Agricole was cut from Aa1 to Aa2 and Societe Generale from Aa2 to Aa3.

A third bank, BNP Paribas, was kept on review for a possible downgrade.

All eyes are now on talks to be held later between German Chancellor Angela Merkel, French President Nicolas Sarkozy and Greek Prime Minister George Papandreou, called in response to growing market fears of an imminent debt default by Greece.